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STATS 722

: Foundations of Financial Mathematics
2020 Semester Two (1205)
Fundamentals of financial mathematics. Topics include: mean-variance portfolio theory; options, arbitrage and put-call relationships; introduction of binomial and Black-Scholes option pricing models; compound interest, annuities, capital redemption policies, valuation of securities, sinking funds; varying rates of interest, taxation; duration and immunisation; introduction to life annuities and life insurance mathematics.
Subject: Statistics
Prerequisite: 15 points at Stage II in Statistics or BIOSCI 209, and 15 points at Stage II in Mathematics
Restriction: STATS 370